Alpha Corporation Receives a Shipment of Flour Every Morning from Their

question 30

Multiple Choice

Alpha Corporation receives a shipment of flour every morning from their supplier. The flour is in 40 kg bags and Alpha will reject any shipment that is more than 4% underweight. The foreman samples 40 bags with each shipment and if the bags average more than 4% underweight, the whole shipment is returned to the supplier. Determine the value for the standard error of the proportion.

• A) 0.03098
• B) 0.00096
• C) 0.00064
• D) 0.02771
• E) 0.0250

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Definitions:

Relative Change

Relative Change represents the ratio of the change in a quantity to the original amount, often expressed as a percentage to indicate how much something has increased or decreased relative to its initial value.

Coefficient Of Correlation

A numerical measure that represents the strength and direction of a linear relationship between two variables.

Covariance

A measure indicating the extent to which two variables change together, revealing whether an increase in one variable tends to be accompanied by an increase (positive covariance) or decrease (negative covariance) in the other.

Distribution

In statistics, a distribution is a function that shows the possible values for a variable and how often they occur.